Wise (LSE: WISE), the global technology company focused on cross-border payments, announced this week that the U.S. Office of the Comptroller of the Currency (OCC) has denied its application for a national trust bank charter. In response, the company plans to submit a new application under the framework established by the Guiding and Establishing National Innovation for U.S. Stablecoins Act, commonly known as the GENIUS Act. This strategic pivot follows the OCC's decision, which cited significant supervisory and compliance concerns, including historical issues related to anti-money laundering (AML) and countering the financing of terrorism (CFT) protocols.

OCC's Denial and Regulatory Concerns

The OCC communicated its decision to deny Wise's initial application for a national trust bank charter on July 23, 2026. The regulator's letter highlighted "significant supervisory and compliance concerns," specifically pointing to a "persistent inability" by Wise's proposed management and board to effectively manage money laundering and terrorist financing risks. The OCC also referenced a public Multi-State Consent Order from July 2025, issued just one month after Wise submitted its original application, which flagged deficiencies in its Bank Secrecy Act and AML/CFT programs. Wise acknowledged these historical issues and stated it has since invested significantly in strengthening its U.S. compliance program, enhancing investigation and reporting processes, and improving customer data integrity.

Furthermore, Wise noted that the original application's approach became "non-viable" due to evolving U.S. payments regulation, particularly the Federal Reserve's general pause on master account access for uninsured trust banks. The company had initially sought direct access to Federal Reserve payment rails to reduce reliance on partner banks and lower cross-border transaction costs.

Pivoting to the GENIUS Act Framework

In light of the denial and the changing regulatory landscape, Wise has informed the OCC of its intention to submit a new national trust bank charter application under a GENIUS Act framework. The GENIUS Act, signed into law in July 2025, provides a comprehensive federal regulatory structure for payment stablecoins, aiming to foster innovation while ensuring stability and consumer protection. This legislation allows for non-bank entities, supervised by the OCC, to issue dollar-backed stablecoins. While Wise has not indicated plans to issue its own stablecoin, this framework offers a pathway for the company to achieve federal supervision and potentially integrate with digital dollar products, aligning with its goal of efficient cross-border payments.

Market Reaction and Operational Continuity

The announcement led to a notable dip in Wise's share price, with London-listed shares falling as much as 10-11% following the news. Despite this setback, Wise emphasized that the OCC's decision does not impact its ongoing operations in the U.S. and globally. The company continues to operate under its existing money transmitter licenses across 48 U.S. states and four territories, as well as a portfolio of over 80 licenses worldwide. In fiscal year 2026, Wise supported approximately 19 million customers, processing over $240 billion in cross-border transactions and saving customers more than $3 billion.

Wise, formerly known as TransferWise, has been a significant player in the global fintech sector, known for its transparent and low-cost international money transfers. Its pursuit of a national trust bank charter in the U.S., initiated in June 2025, was a strategic move to streamline its American operations, gain direct access to federal payment systems, and reduce its reliance on a complex network of state-by-state licenses and partner banks. This ambition reflects a broader trend among fintech companies seeking to integrate more deeply into the traditional financial infrastructure, often through specialized bank charters, to enhance efficiency and expand service offerings.

The focus now shifts to Wise's revised application under the GENIUS Act. The success of this new approach will depend on how effectively Wise addresses the OCC's previous compliance concerns and how its proposed model aligns with the specific requirements for stablecoin issuers, even if it doesn't directly issue a stablecoin itself. The regulatory landscape for digital assets in the U.S. continues to evolve, with federal agencies still working on implementing guidance for the GENIUS Act. The outcome of Wise's resubmission could set a precedent for other fintechs looking to navigate the intersection of traditional finance and the burgeoning digital asset space under new regulatory frameworks.

Original announcement: Wise Group plc — SEC Form 6-K